Non agricultural is the employment data of non-agricultural population in the United States, that is, excluding the employment index of agricultural population, it directly reflects the employment rate of a country. What is the impact of us big non farm data on crude oil?
The number of non-agricultural employment can reflect the development and growth of the manufacturing and service industries. A decrease in the number of non-agricultural employment means that enterprises have reduced production and the economy has entered a depression. When the social economy is fast, the consumption will naturally increase, and the positions in the consumption and service industries will increase. When the number of non-agricultural employment increases significantly, it indicates a healthy economic situation, which should be beneficial to the exchange rate in theory and may indicate higher interest rates, while the potential high interest rates encourage the foreign exchange market to promote the value of the country's currency more, and vice versa. Therefore, the data is an important indicator to observe the degree and status of socio-economic and financial development. The number of non-agricultural employment is a project in the employment report, which mainly counts the changes of jobs outside agricultural production.
If the non-agricultural data is significantly better than expected, the market will generally believe that the economic situation is better, and crude oil consumption in both industrial and civil sectors will increase. This will push up oil prices, and investors will be inclined to buy crude oil long. Since then, crude oil prices will generally rise by 150-250 basis points. On the contrary, the original oil price is likely to fall.
The impact of us big non farm data on crude oil is very obvious, and investors need to pay special attention to it.